Corporations Flashcards
1
Q
To whom does additional Part IV tax apply?
A
Additional Part IV tax only applies to connected corporations whereas the SBD amount limit includes associated corporations.
2
Q
With whom is the small business deduction shared?
A
The SBD amount limit is shared with associated corporations.
3
Q
What is the definition of an associated company?
12,185
A
Definition of associated corporations:
- may depend on the definition of “related persons”:
- includes blood relationship, marriage, or adoption but
- excludes aunts, uncles, nieces, nephews, and cousins
Corporations can be related to individuals and other corporations:
- the key is the concept of control
- see conditions a 12,185.10
- control test
- related test
- cross-ownership test
4
Q
What are specified shares? 12,185.10
A
Definition of “specified shares” at 12,185.10
- no voting rights
- restriction on amount of dividends
